State income, State reserve goes down

Central bank – Maldives Monetary Authority (MMA) has said that State income for December, 2015 went down, and that State reserve depleted by end of January, 2016.

In MMA’s economic review for February, it was stated that State reserve by end of January was at USD 591.9 million.

The amount is a 4 percent decrease when compared to January, 2015; and a 5 percent decrease when compared to December, 2015.

Usable reserve, by end of January, when compared on a monthly basis, increased by 2 percent.

MMA reported USD 197.2 million in usable reserve by end of January, 2016 – a 32 percent increase when compared to January, 2015.

Looking into statistics related to State expenses and income, State received MVR 1.3 billion – minus non-reimbursable financial aid – as income in December, 2015 – which is MVR 125.9 million short of income received in December, 2014.

MMA identified the main factor leading to the fall in income level to the decrease in income received from taxation.

As such, MMA noted that tax on goods and services in tourism industry – TGST – and tax on regular goods and services – GST – has gone down.

On the other hand, Increase in income from resort rent meant that income from sources other than tax had risen during the same time period.

State expenditure in December, 2015 was MVR 2 billion – a MVR 1.1 billion increase when compared to December, 2014.

MMA identified as the rise in recurrent and capital expenditure as the driving factors for the rise in State expenditure in December, 2015.